A $3 million Government grant has been awarded to an industry-led initiative aimed at helping Taranaki engineering and manufacturing firms pivot away from the shrinking energy sector.
Regional Development Minister Shane Jones announced the Regional Infrastructure Fund grant for the Taranaki Alliance today. The collaborative hub acts as a single front door for major customers to access local expertise, allowing businesses to pitch for large national and international industrial contracts together.
Jones said the region has been a powerhouse economy for decades but that status is now in jeopardy.
"Taranaki has a huge amount of expertise and experience in engineering, logistics and manufacturing due to decades of oil and gas sector work," Jones said. "These firms are now looking for new opportunities to apply that know-how and retain the region's talent."
The announcement comes just days after Canadian methanol producer Methanex confirmed it will shut down its Motunui operations in early 2027, resulting in the direct loss of at least 150 local jobs.
Te Puna Umanga Venture Taranaki helped establish the Alliance in response to the changing local economy. Declining activity in the traditional oil and gas sector has already contributed to the loss of around 1700 jobs. Independent modelling projects more than 5300 job losses by 2030 if replacement markets are not developed.
To counter this, the Alliance is targeting $200 million in contracts over its first three years across renewable energy, infrastructure, advanced manufacturing and aerospace.
Stacey Hitchcock, interim chief executive of Venture Taranaki, said the region possesses one of the most capable concentrations of engineering expertise in New Zealand.
"This funding provides the runway needed to establish the Alliance as a self-sustaining platform that will deliver long-term economic value well beyond the initial investment," Hitchcock said.
More than 85 businesses have already signalled their intent to participate. The new funding builds on $500,000 in seed money committed by the New Plymouth District Council late last year, alongside early investments from the industry.
New Plymouth Mayor Max Brough thanked the Government for backing the initiative.
"This outstanding opportunity was presented to our incoming council early in our new term and developed at pace, proving that when business and local government work closely together great opportunities can be created," Brough said.
Dean Eggers, managing director of Symons Group and current chair of the Taranaki Alliance Industry Advisory Group, said local industry has backed the concept from day one.
"The challenge has never been capability, it's been creating a coordinated way for customers to access everything Taranaki can offer," Eggers said.
He said the investment gives the sector the ability to scale its efforts and unlock lucrative opportunities for businesses of every size across the province.
The $3 million grant will cover core operating costs to establish a commercially sustainable model. The money will go towards generating leads, coordinating bids, lifting compliance capabilities and giving international partners a single point of contact for the region.
